The effects of global warming, rapid urbanisation, resource scarcity, and pollution are being felt in the day-to-day lives of ordinary citizens today. Once defined solely by concrete, steel, and aesthetics, the real estate sector is now being reshaped by a powerful shift toward environmental accountability, energy efficiency, and human-centric design, led by sustainable building or green building practices, firmly establishing it as a moral imperative.
With the green buildings market projected to grow at a compound annual growth rate of 9.42% from $565.33 billion in 2024 to reach $1.37 trillion by 2034, traditional modes of construction too is getting a facelift – evidence show that LEED-certified buildings tend to consume 25% less energy, use 11% less water, and emit 34% less CO2 compared to conventional buildings. This represents a great opportunity for the Indian market, as the demand for sustainable spaces is growing in the commercial real estate and residential segments. According to a CBRE report, over 80% of occupiers prefer green-certified buildings. Developers are responding by incorporating solar panels, energy-efficient windows, smart home automation, and rainwater harvesting systems into their projects. In fact, last year Bengaluru and Mumbai were among the leaders in the green-certified office spaces, as the demand for sustainable buildings grew 24% year-over-year, on the back of technology, engineering, and manufacturing firms.
This shift represents a fundamental change from compliance to consciousness. Real estate developers, architects, and planners are increasingly realising that the future of real estate isn’t just about square footage; it’s about sustainability per square foot. As the sector evolves, new trends and technologies rapidly emerge, reshaping the blueprint of building green and sustainable buildings.
The future of green buildings could very well be defined by how smart they are, propelling an influx of smart technologies powered by IoT, artificial intelligence (AI), and advanced building management systems (BMS). By leveraging real-time data from interconnected systems, these innovations enable dynamic adjustments to lighting, HVAC, and energy usage based on occupancy patterns and ambient conditions.
Circular Economy in Construction
Environmental circularity, in terms of designing buildings for deconstruction and reuse, is also increasingly finding its place in the mainstream construction of buildings. Modular construction techniques allow components to be repurposed at the end of their lifecycle, minimising waste and conserving resources. In fact, early trials in modular construction have shown up to 25% faster delivery timelines and 15% less material wastage. This not only reduces environmental impact but also lowers costs over time by reusing valuable materials.
In a water-stressed country like India, managing the resource judiciously is critical. Real estate projects are increasingly adopting 100% water recycling through advanced STPs, rainwater harvesting systems, and low-flow fixtures. Together, these technologies ensure efficient water usage while maintaining lush landscapes and green spaces. The integration of IoT-enabled water monitoring systems is possibly the next frontier, as the measure has shown potential to cut down water wastage, a vital move for urban resilience.
Biophilic design, a recent trend that involves incorporating natural elements, such as natural light, plants, and materials, into buildings to enhance well-being, productivity, and a sense of connection to the natural world, has caught up in both Tier 1 and Tier 2 cities across India. With twin factors of rapid urbanisation and cultural affinity for nature, Tier 1 cities like Bengaluru, Mumbai, and Delhi are seeing the integration of natural elements into urban homes faster than others.
The Road Ahead for Green Buildings
While the benefits of green buildings are widely acknowledged, challenges persist. Cost is one of the most significant barriers despite substantial long-term savings on operational expenses. At the same time, regulatory frameworks across regions make adoption difficult. At the same time, awareness, especially in high-potential Tier 2 and Tier 3 markets, is relatively low, making it urgent for developers to bridge this knowledge gap to accelerate adoption.
Green building practices will continue to evolve alongside advancements in technology and materials science, making it imperative for governments and private stakeholders to collaborate and create an ecosystem that supports widespread adoption of green practices through awareness and other incentives.
